Indian Rupee Appreciates by 38 Paise to 90.40 Against US Dollar on February 12, 2026
Mumbai, February 12, 2026 — The Indian Rupee (INR) strengthened by 38 paise to trade at 90.40 against the US dollar in early market hours on Thursday, boosted by foreign fund inflows and subtle intervention from the Reserve Bank of India (RBI), according to market analysts and forex traders.
At the interbank foreign exchange market, the rupee commenced at 90.55 per dollar before gaining ground to 90.40, marking a notable rise from the previous day’s close. During the initial trading session, the rupee also touched 90.56 before the upward momentum cemented.
Forex experts pointed to steady, albeit moderate, foreign investment inflows that played a psychological role in anchoring the rupee. Meanwhile, the RBI has been quietly managing liquidity to ensure ample cash availability in the banking system, supporting the currency’s stability. CR Forex Advisors’ Managing Director, Amit Pabari, noted, “The RBI has been quietly ensuring that liquidity remains abundant in the banking system. With surplus liquidity hovering near Rs 3 trillion — the highest in six months — banks are flush with cash.”
Despite these supportive factors, challenges persist. Elevated crude oil prices continue to act like a "silent tax" on the economy, while geopolitical tensions remain unresolved, dampening risk appetite among investors. Pabari elaborated that steady dollar demand also persists in the background, with ongoing uncertainty clouding the US-India trade framework. This includes recent revisions to a US White House fact sheet outlining terms of their trade agreement.
The White House document specifies that India will phase out or reduce tariffs on US industrial goods as well as a broad spectrum of American food and agricultural products. While markets initially welcomed the trade deal, fresh concerns emerged following the release of this fact sheet, which has induced a cautious sentiment among forex participants.
In other market indicators, the dollar index, measuring the greenback’s strength against six major currencies, dipped marginally by 0.05 percent to 96.78. Meanwhile, Brent crude oil futures were trading 0.42 percent higher at $69.69 per barrel.
On the domestic equity front, key indices reflected a dip during early trade. The BSE Sensex declined by 349.87 points to 83,883.77, with the Nifty index dropping 106.60 points to 25,847.25. However, foreign institutional investors demonstrated continued confidence by purchasing equities worth Rs 943.81 crore on Wednesday, according to exchange data.
As global economic and geopolitical uncertainties persist, forex market participants will closely monitor crude oil prices and the evolving dynamics of the US-India trade relations, which remain key to the rupee’s trajectory in the near term.
This report was compiled using information available on February 12, 2026, as reported by The Hindu and PTI.